Octopus Energy and Bulb strike new deal to offer 1.5 million Britons

1.5 million households in the UK have been handed an energy bills lifeline as Octopus Energy, one of the UK’s biggest suppliers, has struck a deal with the Government to take over Bulb’s customers. Skyrocketing wholesale gas costs dealt a major blow to the UK’s energy industry, as Bulb was among the dozens of other suppliers that went bust over the past year. Given how large the failed energy company was, Bulb and its consumers were placed under special administration. Now, the Government has confirmed that an agreement has been reached between Special Administrators of Bulb and Octopus Energy, in a move which they say “will protect consumers and taxpayers.”Over the past few months, the administrators ran a ‘competitive and extensive’ sale process for Bulb and its consumers, following which it struck a deal with Octopus Energy, which is expected to take effect by the end of November.The Department for Business, Energy and Industrial Strategy said that the sale will be completed following a statutory process called an Energy Transfer Scheme (ETS), which will transfer the relevant assets of Bulb into a new separate entity that will protect consumers during the transfer process.In a statement, BEIS said: “Bulb customers will not experience any change or disruption to their energy supplies as part of this transfer. There is no change to either Bulb or Octopus customers’ supply arrangements, and credit balances are protected.”This means customers do not need to take any action and all direct debits will automatically be transferred.” Octopus Energy and Bulb strike new deal to offer 1.5 million Britons energy bills lifeline (Image: Getty) Wholesale gas costs over the past year led to Bulb going bust (Image: Getty)Business and Energy Secretary Grant Shapps said: “This Government’s overriding priority is to protect consumers and today’s sale will bring vital reassurance and energy security to consumers across the country at a time when they need it most.'”This is a fresh start and means Bulb’s 1.5 million customers can rest easy, knowing they have a new energy home in Octopus. Moving forward, I intend to do everything in my power to ensure our energy system provides secure and affordable energy for all.”The Government vowed to work closely with Ofgem and Bulb’s special administrators to ensure that the transfer of customers to Octopus “achieves the best outcome practicable for Bulb customers, taxpayers, and the industry.They added: “Today’s deal comes alongside ongoing steps that the UK Government and independent regulator, Ofgem, are taking to boost the financial resilience of the sector.”READ MORE: Octopus Energy hands millions lifeline to save £100 on winter bills Dozens of other energy companies went bust (Image: Express)According to reports, Octopus Energy asked the Government for £1billion to take on its collapsed rival’s customers, and was expected to inject between £100million and £200million as part of the deal.In the statement, the Government said that Octopus would “continue to use Bulb’s technology and brand for a transitionary period so that there is a smooth transfer for Bulb’s customers.In addition, Bulb customers will continue to benefit from Ofgem’s supply licence protections, such as ensuring energy suppliers provide advice for vulnerable customers through existing financial support schemes.Greg Jackson, CEO and founder of Octopus Energy Group, comments: “We take our responsibilities very seriously. We will work unbelievably hard to deliver value for taxpayers and to look after Bulb’s staff and customers.”We started off as rivals but shared the same mission – driving a greener, cheaper energy system with people at the heart. We know how important this is to Bulb’s loyal customers and dedicated staff, and are determined that Octopus can provide them with a stable home for the future.”THIS IS A BREAKING STORY. MORE TO FOLLOW